Internet HOLDRs Has Further To Fall Says Market Timer Frank Kollar.

May 10, 2006 (FinancialWire) (By Frank Kollar)

Shares of the exchange traded fund Internet HOLDRs (AMEX: HHH) broke below a major support level back on May 4th. Internet HOLDRs contains such widely traded Internet companies as: eBay Inc. (NASDAQ: EBAY), Yahoo! Inc. (NASDAQ: YHOO) and Amazon.com, Inc. (NASDAQ: AMZN).

Only two weeks ago, Fibtimer.com (http://www.fibtimer.com) stated that if Internet HOLDRs closed below 55.42, it would continue lower and was likely to make a run for its April 2005 lows at 51.40. Shares of Internet HOLDRs closed Thursday, May 18 th at $50.81 having reached this downside target.

But this is also a bearish indicator as Internet HOLDRs is now trading below its April 2005 correction lows. We now would expect to see Internet HOLDRs make a run for $44.60 over the next several weeks, which is the 50% retracement of the entire 2003-2004 rally in internet stocks.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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